AI-generated · cited to primary sources · not investment advice · How we research
GE Vernova T&D
Our verdict on GE Vernova T&D isn’t the consensus take — see where we landed, and the one risk the bull case glosses over.
See the verdict — free →Does management do what it says?
The company significantly outperformed its mid-to-high teens target by achieving an EBITDA margin of 19.1% for FY 2024-25. (5 exceeded across 5 tracked commitments)
“Overall, in first half, we delivered EBITDA of 27.3%. We have higher confidence to delivering EBITDA in the range of mid 20 in this financial year”
The order backlog has further increased to 127 BINR as of March 31, 2025, and subsequently reached 129.6 BINR by June 2025, maintaining the growth trajectory. (1 in progress, 2 exceeded across 3 tracked commitments)
“Order Backlog 130 BINR ... 126.6 [Mar'25] 129.6 [Jun'25]”
See the full cited Management analysis of GE Vernova T&D
How durable is the business?
Profitability has surged as Profit Before Tax (PBT) grew 3.1x over the year, driven by higher revenue and better cost absorption. (5 expanding)
“Profit before tax* Q3'25 17.7% (1.9) to Q3'26 27.0% (4.6)”
Exports continue to be a high-margin focus area, with the company expanding its geographic reach into Europe, Latin America, and the Middle East. (5 expanding)
“Q3'26 Sales : 17,006... Domestic 12,303, 72%”
See the full cited Business Model analysis of GE Vernova T&D
Where does growth come from?
The company's cash position is accelerating, with significant cash generation during the year leading to a strong liquidity buffer. (5 accelerating across 5 signals)
“We continue to convert our profits into cash. And during the 9-month period, we generated INR6.7 billion cash operationally and end of December, we have healthy cash and cash equivalent of INR15.9 billion with no debt.”
Quarterly revenue growth is accelerating significantly, with Q1 FY26 revenue rising 39% compared to the same quarter last year, following a 35% YoY increase for the full FY 2024-25. (5 accelerating across 5 signals)
“Order Backlog 143.8 Dec'25”
See the full cited Future Growth analysis of GE Vernova T&D
What could break the thesis?
The risk remains STABLE as the primary market drivers continue to be large-scale national infrastructure plans like NEP II and ISTS, which are government-led. (1 stable)
“Orders in Hand : 143,840 ... Central Utilities & PSU 63% State Utilities 35% Private 2%”
The risk is EASING. The company has successfully shifted its order backlog toward the private sector, which now accounts for 62% of the 126.6 BINR backlog, reducing reliance on State Utilities (4%) and Central Utilities/PSUs (34%). (3 easing, 2 stable)
“Are you seeing any impact to you, any assessment you guys have done, if at all the government reverses or relaxes that order, which was there 4, 5 years back for Chinese players to bid for HVDC or T&D orders?”
See the full cited Risk analysis of GE Vernova T&D
Read the full thesis on GE Vernova T&D
AI-generated informational research only. ThesisLoop is not investment advice, a stock recommendation, or a guarantee of returns.